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The U.S. Senate passed the Internet Tax bill yesterday in a bipartisan vote of 69 to 27. It faces an uncertain future in the House. President Obama has said that he supports it.
The bill, having undergone the usual wordsmithing by its backers, is called the Marketplace Fairness Act.
While businesses that generate less than $1 million or less in online revenue are exempted, past experience with government shows that this will surely change in the future, possibly quickly. EBay's CEO John Donahoe says the exemption should be extended to less than $10 million in annual out-of-state sales for companies that have fewer than 50 employees.
Big businesses Amazon and Best Buy support the bill.
Scott Shane, professor of entrepreneurial studies at Case Western Reserve University, says the tax is "just a recipe for Americans to pay higher taxes." [in Entrepreneur]
Senator Rand Paul (R-Kentucky) writes in an email, "This bill will create an online regulatory nightmare that will wreak havoc on small businesses to the benefit of large corporations and foreign competitors."
See how your Senators voted here.